INVESTMENT ADVISER
Jundt Associates, Inc.
1550 Utica Avenue South
Suite 950
Minneapolis, MN 55416
DISTRIBUTOR
U.S. Growth Investments, Inc.
1550 Utica Avenue South
Suite 935
Minneapolis, MN 55416
ADMINISTRATOR
Firstar Mutual Fund Services, LLC
615 East Michigan Street, 3rd Floor
Milwaukee, Wisconsin 53202-5207
TRANSFER AGENT
Firstar Mutual Fund Services, LLC
615 East Michigan Street, 3rd Floor
Milwaukee, Wisconsin 53202-5207
CUSTODIAN
Firstar Bank, N.A.
777 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
INDEPENDENT AUDITORS
KPMG LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402
LEGAL COUNSEL
Faegre & Benson LLP
2200 Norwest Center
Minneapolis, MN 55402
FOR MORE INFORMATION CONCERNING EACH FUND (INCLUDING FEES, EXPENSES AND RISKS
ASSOCIATED WITH AN INVESTMENT IN EACH FUND), CONTACT THE FUND AT 1-800-370-0612
OR YOUR INVESTMENT PROFESSIONAL FOR THE FUND'S CURRENT PROSPECTUS. PLEASE READ
IT CAREFULLY BEFORE INVESTING. PAST PERFORMANCE SHOWN IN THIS REPORT SHOULD NOT
BE CONSIDERED A REPRESENTATION OF FUTURE PERFORMANCE. INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
CERTAIN PERFORMANCE INFORMATION CONTAINED HEREIN RELATING TO JUNDT U.S.
EMERGING GROWTH FUND, JUNDT OPPORTUNITY FUND AND JUNDT TWENTY-FIVE FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC., EACH
FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES.
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY THE FUNDS' CURRENT PROSPECTUS.
[LOGO] JUNDT
FUNDS
JUNDT
GROWTH FUND
JUNDT
U.S. EMERGING
GROWTH FUND
JUNDT
OPPORTUNITY FUND
JUNDT
TWENTY-FIVE FUND
SEMI-ANNUAL REPORT
JUNE 30, 2000
SEARCHING TODAY FOR THE GENIUSES OF TOMORROW(SM)
<PAGE>
LETTER TO SHAREHOLDERS (UNAUDITED)
DEAR SHAREHOLDER,
The markets are catching their collective breath after taking a volatile ride
during the first half of calendar year 2000. The markets reacted not only to
rising oil prices and the Federal Reserve Board's continued concerns over the
perils of an overheated economy, but also to the tremendous strength,
flexibility and innovation of many U.S. companies. These competing forces were
reflected in the NASDAQ as it first surged 22% to reach an all-time high in
mid-March, then dropped over 37% by the end of May. The NASDAQ experienced
several smaller moves through June and closed the first half of 2000 down 4%.
The Dow Jones Industrial Average experienced a similar, albeit less dramatic,
ride. The Dow swelled 3% in January to reach an all-time high, and then steadily
deflated more than 16% through March. Although the Dow recovered marginally
during June, it closed the first half of 2000 down more than 8%. These volatile
moves sharply contrasted the steady climb during the first three quarters of
1999 and the sharp rise during the fourth quarter last year. The unparalleled
optimism of 1999 was quickly replaced by caution and concern.
Throughout the first half of this year, the Funds recognized the underlying
volatility and worked hard to smooth the ride for investors. In the days leading
up to the first three Federal Reserve meetings of the year, the Funds moderately
hedged their portfolios anticipating that the Fed would raise the discount rate
in an attempt to cool the economy. The Fed, in fact, took active steps at each
of these three meetings and increased the discount rate from 5.5% to 6.5% where
it currently stands. After the Fed's May meeting, economic indicators suggested
that the economy showed signs of a moderate slowdown. Accordingly, the Funds
removed their hedges on the belief that the Fed would not raise rates at its
June meeting. When the Fed refused to push rates higher and companies began to
hint at strong second quarter earnings, the Funds were in a position to fully
participate in the early-summer rally. Notwithstanding the strong June returns,
the Funds' overall positioning throughout the first half of the year insulated
the portfolios from the large swings in the markets while it produced steady
returns for investors.
JUNDT GROWTH FUND
The Jundt Growth Fund, which is generally managed more conservatively than the
other Jundt Funds, concentrates on medium-to-large capitalization companies,
with a majority of the equity securities consisting of companies that have
annual revenues greater than $750 million. The Fund seeks to invest in companies
with annual revenue growth rates of at least 15%. As of June 30th, the Fund's
portfolio was generating top-line revenue growth in excess of 78% versus an
average of 19% for the companies comprising the Standard & Poor's 500 Index.
Companies in the telecommunications and medical devices/drugs sectors were
prominent in the portfolio during the period.
The aggregate returns for the various periods ended June 30, 2000 for the Jundt
Growth Fund and the Fund's comparable benchmarks are stated below:
SINCE
YEAR-TO-DATE 1-YEAR INCEPTION(1)
------------ ------ ------------
JUNDT GROWTH FUND* (2.57)% 5.42% 194.40%
Lipper Growth Fund Index 2.81 17.57 322.94
Standard & Poor's 500 Index (0.42) 7.24 357.59
1
<PAGE>
LETTER TO SHAREHOLDERS (UNAUDITED) (CONTINUED)
JUNDT U.S. EMERGING GROWTH FUND
(FUND CLOSED TO NEW INVESTORS)
The investment objective of the Jundt U.S. Emerging Growth Fund is long-term
capital appreciation. The Fund seeks to attain this objective by investing in 30
to 50 of the fastest growing companies in the United States. This Fund
concentrates on small-to-medium capitalization companies. The majority of its
portfolio is comprised of companies with annual revenues of less than $250
million. We place an emphasis on companies we believe will achieve annual
revenue growth of at least 25%. As of June 30th, the Fund's portfolio was
generating top-line revenue growth in excess of 134%.
Companies in the computer services/software, telecommunications and Internet
technology sectors were the largest portions of the portfolio during the period.
The aggregate returns for the various periods ended June 30, 2000 for the Jundt
U.S. Emerging Growth Fund and the Fund's comparable benchmarks are stated below:
SINCE
YEAR-TO-DATE 1-YEAR INCEPTION(2)
------------ ------ ------------
JUNDT U.S. EMERGING
GROWTH FUND** 6.13% 58.08% 320.02%
Lipper Small Cap
Fund Index 4.58 35.27 93.03
Standard & Poor's 500 Index (0.42) 7.24 155.14
JUNDT OPPORTUNITY FUND
The Jundt Opportunity Fund seeks long-term capital appreciation by utilizing an
aggressive yet flexible investment program. The Fund may employ leverage, sell
securities short, and buy and sell futures and options contracts to protect
assets against adverse market price changes and to generate additional
investment returns.
Companies in the computer hardware and software, telecommunications and medical
devices/drug sectors were significant positions within the Fund's portfolio
during the period.
The aggregate returns for the various periods ended June 30, 2000 for the Jundt
Opportunity Fund and the Fund's comparable benchmarks are stated below:
SINCE
YEAR-TO-DATE 1-YEAR INCEPTION(3)
------------ ------ ------------
JUNDT OPPORTUNITY FUND** 10.92% 36.12% 238.30%
Lipper Capital Appreciation
Fund Index (1.54) 19.18 97.44
Standard & Poor's 500 Index (0.42) 7.24 107.01
JUNDT TWENTY-FIVE FUND
The Jundt Twenty-Five Fund's investment objective is long-term capital
appreciation. The Fund seeks to achieve this objective by investing in a
concentrated portfolio of approximately, but not less than, 25 stocks composed
primarily of American growth companies of all sizes.
The Fund's investment concentrations during the period were largely in
telecommunications, medical devices/drugs, computer software, computer software
and Internet technology stocks.
The aggregate returns for the various periods ended June 30, 2000 for the Jundt
Twenty-Five Fund and the Fund's comparable benchmark are stated below:
SINCE
YEAR-TO-DATE 1-YEAR INCEPTION(4)
------------ ------ ------------
JUNDT TWENTY-FIVE FUND** (3.83)% 13.43% 138.60%
Lipper Capital Appreciation
Fund Index (1.54) 19.18 64.41
Standard & Poor's 500 Index (0.42) 7.24 55.21
2
<PAGE>
LETTER TO SHAREHOLDERS (UNAUDITED) (CONCLUDED)
JUNDT EXPANDS FUND FAMILY
I am pleased to announce the addition of two new funds to the Jundt Family of
Funds -- Jundt Mid-Cap Growth Fund and Jundt Science & Technology Fund.
JUNDT MID-CAP GROWTH FUND maintains a core portfolio of approximately 30 to 50
stocks of primarily medium-size American Growth companies with market
capitalizations similar to the S&P Mid-Cap 400 Index. The Fund may employ
leverage, sell securities short, and buy and sell futures and options contracts
to protect assets against adverse market price changes and to generate
additional investment returns.
JUNDT SCIENCE & TECHNOLOGY FUND maintains a core portfolio of approximately 30
to 50 stocks of primarily medium-size American Growth companies without regard
to their size, that design, develop, manufacture or sell science or
technology-related products or services. The Fund may employ leverage, sell
securities short, and buy and sell futures and options contracts to protect
assets against adverse market price changes and to generate additional
investment returns.
Please note that the Jundt Funds have selected Firstar Bank to provide custodial
services and Firstar Mutual Fund Services for fund administration, fund
accounting and transfer agency services. As a result, the Funds now have a new
address and wiring instructions for placing financial transactions. Please
contact your broker or the Funds at 1-800-370-0612 if you have any questions.
WE CLOSED THE JUNDT U.S. EMERGING GROWTH FUND TO NEW INVESTORS AS OF APRIL 30,
2000. Existing shareholders may continue to purchase additional shares of the
Fund.
Thank you for investing with us in the Jundt Funds.
Sincerely,
/s/ James R. Jundt
James R. Jundt
Chairman
*Quoted performance is for the Growth Fund's Class I shares, which are not
available for public investment. The Fund currently issues four share
classes, each subject to different sales charges and Rule 12b-1 fees. Class I
shares are not subject to sales charges or Rule 12b-1 fees. Therefore, the
performance of Class I shares will exceed that of each of the Fund's other
share classes.
**Quoted performance is for the Fund's Class A shares. Each Fund currently
issues four share classes, each subject to different sales charges and Rule
12b-1 fees. Class A shares are subject to a maximum front-end sales charge of
5.25%. The stated return does not reflect the deduction of any front-end
sales charge.
(1)Inception dates are September 3, 1991 for the Jundt Growth Fund's Class I
shares and the S & P 500 Index and August 31, 1991 for the Lipper Growth Fund
Index.
(2)Inception dates are January 2, 1996 for the Jundt U.S. Emerging Growth Fund's
Class A shares and December 29, 1995 for the Lipper Small Cap Growth Fund
Index and the S & P 500 Index.
(3)Inception date is December 26, 1996 for the Jundt Opportunity Fund's Class A
shares and the Lipper Capital Appreciation Fund Index and December 31, 1996
for the S & P 500 Index.
(4)Inception date is December 31, 1997 for the Jundt Twenty-Five Fund's Class A
shares and the Index data.
3
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: GROWTH FUND
JUNDT ASSOCIATES IS GROWTH-ORIENTED; OUR FOCUS IS ON COMPANIES GENERATING
significant revenue increases. We believe the U.S. economy's heterogeneous
nature and multi-trillion-dollar size generally afford investors significant
growth opportunities. We emphasize the fundamental prospects of individual
companies rather than macroeconomic trends.
The Growth Fund concentrates on medium- to large-size companies, with at least
half the equity securities consisting of companies that have annual revenues
greater than $750 million. Within these parameters, the Growth Fund's mission is
to establish equity positions in 30 to 50 companies we believe to be among the
fastest-growing corporations in America. Particular emphasis is placed on
companies we believe will achieve annual rates of revenue growth of 15% or
greater. See the Fund's prospectus for a description of the risks that may be
associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF JUNE 30, 2000
(as a percentage of net assets)
--------------------------------------------------------------------------------
[PIE CHART]
Computer Services/Software 7.5%
Computer Hardware 2.2%
Healthcare Services 6.7%
Telecommunication Infrastructure 21.8%
Wireless/Telecommunication Services 23.2%
Internet Technology 9.0%
Internet Services 1.2%
Medical Devices/Drugs 16.5%
Retail 7.1%
Restaurants 3.5%
4
<PAGE>
PERFORMANCE DATA: GROWTH FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
--------------------------------------------------------------------------------
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
JUNDT GROWTH FUND(1) JUNDT GROWTH FUND(1)
(Class I shares (Class I shares RUSSELL LIPPER GROWTH
without sales charge)* with sales charge) 1000 INDEX(2) FUND INDEX(3)
---------------------- ------------------ ------------- -------------
<S> <C> <C> <C> <C>
9/3/91 10,000 9,475 10,000 10,000
10,036 9,509 10,000 9,925
12/31/91 11,073 10,492 10,840 10,801
10,472 9,922 10,605 10,631
9,870 9,352 10,753 10,421
10,178 9,644 11,094 10,686
12/31/92 11,152 10,567 11,808 11,625
10,665 10,105 12,300 11,970
10,821 10,253 12,386 12,147
11,022 10,443 12,786 12,730
12/31/93 11,159 10,573 13,010 13,018
11,032 10,453 12,497 12,628
10,331 9,789 12,472 12,351
11,853 11,230 13,110 12,958
12/31/94 11,681 11,068 13,060 12,813
11,978 11,349 14,302 13,739
12,813 12,141 15,649 15,209
14,267 13,518 17,044 16,592
12/31/95 13,761 13,039 17,993 16,997
13,957 13,224 18,985 17,761
15,305 14,501 19,759 18,349
15,846 15,014 20,403 18,880
12/31/96 15,857 15,024 22,032 19,977
14,965 14,179 22,373 19,901
16,575 15,705 26,134 23,043
18,509 17,537 28,416 25,407
12/31/97 17,577 16,654 29,270 25,576
19,928 18,881 33,183 28,741
21,097 19,989 34,013 29,558
20,260 19,196 30,506 26,185
12/31/98 25,186 23,864 37,179 32,147
27,806 26,346 38,713 33,776
27,925 26,459 41,470 35,969
27,970 26,502 38,733 34,107
12/31/99 30,217 28,630 44,954 41,135
3/31/00 30,844 29,225 46,588 44,131
6/30/00 29,441 27,895 44,990 42,290
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended June 30, 2000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SINCE SINCE
1-YEAR 5-YEAR INCEPTION(4) INCEPTION(5)
--------------------------------------------------------------------------------
JUNDT GROWTH CLASS A
Without sales charge* 5.40% -- -- 18.51%
With sales charge (a) (0.14) -- -- 17.10
--------------------------------------------------------------------------------
JUNDT GROWTH CLASS B
Without sales charge* 4.43 -- -- 17.66
With sales charge (b) 0.43 -- -- 17.40
--------------------------------------------------------------------------------
JUNDT GROWTH CLASS C
Without sales charge 4.54 -- -- 17.72
With sales charge (c) 3.54 -- -- 17.72
--------------------------------------------------------------------------------
JUNDT GROWTH CLASS I
Without sales charge* 5.42 18.08% 13.00% --
With sales charge (a) (0.11) 16.83 12.32 --
--------------------------------------------------------------------------------
RUSSELL 1000 INDEX 9.25 23.69 18.56 22.80
--------------------------------------------------------------------------------
LIPPER GROWTH FUND INDEX 17.57 22.70 17.73 22.43
--------------------------------------------------------------------------------
*Applicable to investors who purchased shares at net asset value (without sales
charges), including shareholders who acquired Class I shares upon the Fund's
conversion to an open-end fund on December 29, 1995.
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
September 3, 1991. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON
THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. Total return
prior to December 29, 1995, reflects the Fund's performance as a closed-end
fund. As an open-end fund, the Fund incurs certain additional expenses as a
result of the continuous offering and redemption of its shares. Since
December 29, 1995, the Fund has offered its shares in four classes
(currently, Class A, B, C and I). Class A, Class B and Class C performance
will vary from Class I performance due to the differences in sales charges
and expenses applicable to an investment in each such class.
(2)The Russell 1000 Index measures the performance of the 1,000 largest U.S.
companies based on total market capitalization. THE INDEX DOES NOT REFLECT
THE DEDUCTION OF SALES CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND
INVESTORS. Inception date for index data is September 3, 1991.
(3)The Lipper Growth Fund Index is the composite performance of the 30 largest
"growth" mutual funds, as categorized by Lipper Analytical Services, Inc.
Performance is presented net of the funds' fees and expenses and assumes
reinvestment of all dividends and distributions. HOWEVER, APPLICABLE SALES
CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception date for index data is
August 31, 1991.
(4)Inception dates are September 3, 1991, for the Fund's Class I shares and the
Russell 1000 Index, and August 31, 1991, for the Lipper Growth Fund Index.
(5)Inception data is December 29, 1995, for the Fund's Class A, Class B and
Class C shares and for index data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. INVESTMENT RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL
FLUCTUATE SO THAT SUCH SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST.
5
<PAGE>
Jundt Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2000
COMMON STOCKS
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER HARDWARE (2.2%)
------------------------------------------------------------------------------------------------------
Texas Instruments 30,000 $ 1,962,906 $ 2,060,625
-------------------------------
COMPUTER SERVICES/SOFTWARE (7.5%)
------------------------------------------------------------------------------------------------------
Microsoft Corporation (b) 48,200 3,235,884 3,856,000
Siebel Systems Inc. (b) 20,000 2,120,140 3,271,250
-------------------------------
5,356,024 7,127,250
-------------------------------
HEALTHCARE SERVICES (6.7%)
------------------------------------------------------------------------------------------------------
Immunex Inc. (b) 58,200 1,174,996 2,877,262
Schering Plough Corporation 69,100 2,953,858 3,489,550
-------------------------------
4,128,854 6,366,812
-------------------------------
INTERNET SERVICES (1.2%)
------------------------------------------------------------------------------------------------------
Korea Thrunet Company Limited - Class A 82,800 3,644,707 1,159,200
-------------------------------
INTERNET TECHNOLOGY (9.0%)
------------------------------------------------------------------------------------------------------
America Online Inc. (b) 94,100 5,576,956 4,963,775
Intuit Inc. (b) 53,400 1,540,659 2,209,425
Motorola Inc. 46,800 1,540,704 1,360,125
-------------------------------
8,658,319 8,533,325
-------------------------------
MEDICAL DEVICES/DRUGS (16.5%)
------------------------------------------------------------------------------------------------------
Amgen (b) 33,600 1,178,181 2,360,400
Biogen Inc. (b) 56,700 3,717,155 3,657,150
Lilly Eli & Company 12,200 1,251,866 1,218,475
Merck & Co. 25,800 1,748,348 1,976,925
Pharmacia Corporation 124,254 5,284,159 6,422,379
-------------------------------
13,179,709 15,635,329
-------------------------------
RESTAURANTS (3.5%)
------------------------------------------------------------------------------------------------------
Starbucks Corporation (b) 86,100 2,154,348 3,287,944
-------------------------------
</TABLE>
See accompanying notes to schedule of investments. 6
<PAGE>
Jundt Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) June 30, 2000
COMMON STOCKS (CONCLUDED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL (7.1%)
-------------------------------------------------------------------------------------------------------
Autozone Inc. (b) 113,400 $ 3,392,267 $ 2,494,800
Bed Bath and Beyond Inc. (b) 34,400 592,351 1,247,000
Best Buy Company Inc. (b) 6,000 375,107 379,500
Home Depot 51,300 663,035 2,561,794
-------------------------------
5,022,760 6,683,094
-------------------------------
TELECOMMUNICATIONS INFRASTRUCTURE (21.8%)
-------------------------------------------------------------------------------------------------------
ADC Telecommunications Inc. (b) 36,800 1,064,323 3,086,600
Advanced Fibre Communication (b) 40,800 1,323,061 1,848,750
AT&T Wireless Group (b) 68,600 2,027,690 1,912,225
At Home Corporation - Series A (b) 125,200 3,213,255 2,597,900
Cisco Systems Inc. (b) 34,500 591,563 2,192,906
Corning Corporation 12,800 887,340 3,454,400
Global Crossing Limited (b) 70,600 2,011,930 1,857,662
GT Group Telecom Inc. (b) 94,000 1,651,177 1,486,375
Level 3 Communications Inc. (b) 24,200 2,076,706 2,129,600
-------------------------------
14,847,045 20,566,418
-------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (23.2%)
-------------------------------------------------------------------------------------------------------
Cablevision Systems Class A (b) 39,900 1,572,954 2,708,212
Gemstar International Group (b) 63,600 1,026,190 3,908,419
L.M. Ericsson - ADR 89,000 1,482,406 1,780,000
MCI Worldcom Inc. (b) 71,600 3,154,886 3,284,650
Nextel Communications Inc. - Class A (b) 56,000 842,965 3,426,500
Nokia Corporation - ADR A 56,400 1,239,245 2,816,475
Qwest Communications International (b) 62,400 2,590,907 3,100,500
Voicestream Wireless Corporation (b) 7,500 898,750 872,227
-------------------------------
12,808,303 21,896,983
-------------------------------
TOTAL COMMON STOCKS (98.7) 71,762,975 93,316,980
===============================
</TABLE>
See accompanying notes to schedule of investments. 7
<PAGE>
Jundt Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) June 30, 2000
SHORT-TERM SECURITY
<TABLE>
<CAPTION>
Principal Amount/
Issue Number of Shares Cost Market Value (a)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM SECURITY (3.2%)
---------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch
Government Securities, Inc., 6.15% acquired on
6/30/00 and due 7/03/00 with proceeds of $3,001,538
(collateralized by $2,995,000 U.S. Treasury Note,
7.50%, due 11/15/01). $ 3,000,000 $ 3,000,000 $ 3,000,000
-------------------------------
TOTAL SHORT-TERM SECURITY (3.2%) 3,000,000 3,000,000
===============================
Total investments in securities (101.9%) $74,762,975(c) 96,316,980
===========
Liabilities in excess of other assets (-1.9%) (1,807,194)
-----------
NET ASSETS (100.0%) $94,509,786
===========
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total market value to
total net assets.
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) Cost for federal income tax purposes at June 30, 2000 approximates book
cost of $74,762,975. The aggregate gross unrealized appreciation and
depreciation on investments in securities based on this cost were:
-----------------------------------------------
Gross unrealized appreciation $ 27,292,713
Gross unrealized depreciation (5,738,708)
------------
Net unrealized appreciation $ 21,554,005
-----------------------------------------------
ADR - American Depositary Receipt.
See accompanying notes to financial statements. 8
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: U.S. EMERGING GROWTH
THE U.S. EMERGING GROWTH FUND CONCENTRATES ON SMALLER COMPANIES WITH at least
half the equity securities consisting of companies with annual revenues less
than $750 million. Within these parameters, the U.S. Emerging Growth Fund's
mission is to establish equity positions in 30 to 50 companies we believe to be
among the fastest-growing corporations in America. The focus is on companies we
believe are capable of achieving annual rates of revenue growth of 25% or
greater. See the Fund's prospectus for a description of the risks that may be
associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF JUNE 30, 2000
(as a percentage of net assets)
--------------------------------------------------------------------------------
[PIE CHART]
Computer Hardware 4.0%
Computer Services/Software 18.6%
Wireless/Telecommunication Services 18.8%
Telecommunication Infrastructure 5.1%
Internet Services 4.3%
Internet Technology 16.4%
Miscellaneous 6.3%
Retail 1.2%
Restaurants 3.9%
Medical Devices/Drugs 18.1%
9
<PAGE>
PERFORMANCE DATA: U.S. EMERGING GROWTH FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
--------------------------------------------------------------------------------
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
JUNDT U.S. JUNDT U.S.
EMERGING GROWTH FUND(1) EMERGING GROWTH FUND(1)
(Class A shares (Class A shares LIPPER SMALL CAP RUSSELL 2000
without sales charge)* with sales charge) FUND INDEX(2) GROWTH INDEX(3)
---------------------- ------------------ ------------- ---------------
<S> <C> <C> <C> <C>
1/2/96 10,000 9,475 10,000 10,000
12,260 11,616 10,564 10,563
14,990 14,203 11,403 11,180
14,940 14,156 11,546 11,084
12/31/96 14,340 13,588 11,437 11,114
13,474 12,767 10,359 9,948
16,199 15,349 12,128 11,695
19,767 18,729 13,969 13,673
12/31/97 19,151 18,145 13,165 12,552
20,804 19,712 14,566 14,044
21,155 20,045 14,003 13,237
21,170 20,058 11,007 10,277
12/31/98 26,552 25,158 13,043 12,707
25,770 24,351 12,427 12,493
26,570 25,175 14,273 14,336
27,369 25,932 13,956 13,631
12/31/99 39,575 37,497 18,461 18,182
3/31/00 41,171 39,010 20,524 19,889
6/30/00 42,003 39,798 19,302 18,423
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended June 30, 2000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
--------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS A
Without sales charge* 58.08% 37.58%
With sales charge (a) 49.78 35.94
--------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS B
Without sales charge* 57.06 36.70
With sales charge (b) 53.06 36.55
--------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS C
Without sales charge 57.02 36.68
With sales charge (c) 56.02 36.68
--------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS I 58.63 38.06
--------------------------------------------------------------------------------
LIPPER SMALL CAP FUND INDEX 35.27 15.74
--------------------------------------------------------------------------------
RUSSELL 2000 GROWTH INDEX 28.39 14.56
--------------------------------------------------------------------------------
*Applicable to investors who purchased shares at net asset value (without sales
charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
January 2, 1996. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON THE
TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes reinvestment of
all dividends and distributions. One line reflects total return with
deduction of the current maximum initial sales charge of 5.25%, and the other
line reflects total return without such charge. The ending value of
investments in the Fund's Class B shares, Class C shares (each reflecting the
deduction of the appropriate deferred sales charge, if any) and Class I
shares (which are not subject to any sales charges) over the same time period
was $40,007, $40,774 and $42,666, respectively. Class B, Class C and Class I
performance will vary from Class A performance due to the differences in
sales charges and expenses applicable to an investment in each such class.
(2)The Lipper Small Cap Fund Index is the composite performance of the 30
largest "small company growth" mutual funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the funds' fees and
expenses and assumes reinvestment of all dividends and distributions.
HOWEVER, APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception
date for index data is December 29, 1995.
(3)The Russell 2000 Growth Index measures the performance of the companies
within the Russell 2000 Index with relatively higher price-to-book ratios and
forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF SALES
CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS. Inception date
for index data is January 2, 1996.
(4)Inception dates are January 2, 1996, for the Fund's shares and the Russell
2000 Growth Index, and December 29, 1995, for Lipper Small Cap Fund Index
data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT U.S. EMERGING
GROWTH FUND REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT
ASSOCIATES, INC., THE FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND
EXPENSES. INVESTMENT RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE
SO THAT SUCH SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTMENTS IN SMALLER-CAPITALIZATION COMPANIES MAY EXPERIENCE
GREATER DAILY PRICE FLUCTUATIONS THAN INVESTMENTS IN LARGER COMPANIES.
10
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2000
COMMON STOCKS
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER HARDWARE (4.0%)
----------------------------------------------------------------------------------------------------------
Numerical Technologies Inc. (b) 90,000 $ 3,194,127 $ 4,376,250
Pixelworks Inc. (b) 80,000 1,701,093 1,820,000
-------------------------------
4,895,220 6,196,250
-------------------------------
COMPUTER SERVICES/SOFTWARE (18.6%)
----------------------------------------------------------------------------------------------------------
Exchange Applications (b) 179,800 2,544,927 4,787,175
Immersion Corporation (b) 207,500 4,610,909 6,225,000
Interact Commerce Corporation (b) 429,900 5,950,915 5,078,194
Jacada Limited (b) 82,000 2,414,251 1,040,375
Macrovision Corporation (b) 32,000 1,100,375 2,045,500
New Era of Networks, Inc. (b) 109,400 3,076,475 4,649,500
Onyx Software Corporation (b) 80,000 1,181,866 2,375,000
Open Market Inc. (b) 69,400 1,540,300 958,588
Xybernaut Corporation (b) 50,000 1,039,500 559,375
Zamba (b) 140,000 2,022,969 770,000
-------------------------------
25,482,487 28,488,707
-------------------------------
INTERNET SERVICES (4.3%)
----------------------------------------------------------------------------------------------------------
Digital Insight Corporation (b) 105,950 3,336,681 3,602,300
Imagex.com Inc. (b) 197,500 3,062,500 1,197,344
Korea Thrunet Company Limited - Class A (b) 124,200 2,285,444 1,738,800
-------------------------------
8,684,625 6,538,444
-------------------------------
INTERNET TECHNOLOGY (16.4%)
----------------------------------------------------------------------------------------------------------
Broadbase Software Inc. (b) 60,000 1,601,876 1,837,500
Cais Internet (b) 120,000 1,827,501 1,687,500
Choice Point Inc. (b) 61,110 2,420,066 2,719,395
Cognos Inc. (b) 70,000 2,358,125 2,896,250
Metricom Inc. (b) 50,000 1,498,125 1,393,750
Netiq Corporation (b) 55,693 2,780,273 3,320,695
Radware Ltd. (b) 77,000 2,627,485 2,040,500
RSA Security Inc. (b) 41,000 1,888,519 2,839,250
Snowball.com Inc. (b) 140,000 1,570,315 682,500
Starmedia Network Inc. (b) 157,900 4,755,752 2,980,363
Travelocity.com Inc. (b) 168,000 4,116,179 2,751,000
-------------------------------
27,444,216 25,148,703
-------------------------------
</TABLE>
See accompanying notes to schedule of investments. 11
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) June 30, 2000
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDICAL DEVICES/DRUGS (18.1%)
--------------------------------------------------------------------------------------------------
Cepheid Inc. (b) 302,500 $ 1,822,187 $ 2,665,781
Cor Therapeutics Inc. (b) 25,000 1,523,907 2,132,812
CV Therapeutics Inc. (b) 69,000 938,025 4,782,562
Heartport Inc. (b) 1,238,400 5,567,637 3,560,400
Immune Response Corporation (b) 100,000 1,632,500 1,087,500
Intrabiotics Pharmaceuticals (b) 80,000 1,391,250 2,135,000
Intuitive Surgical Inc. (b) 250,000 2,250,000 2,359,375
Minimed Inc. (b) 24,300 2,147,221 2,867,400
Sonic Innovations (b) 233,700 4,167,876 4,338,056
Texas Biotechnology Corporation (b) 100,000 2,198,380 1,900,000
-------------------------------
23,638,983 27,828,886
-------------------------------
MISCELLANEOUS (6.3%)
--------------------------------------------------------------------------------------------------
Edison Schools Incorporated (b) 115,600 2,082,125 2,680,475
Photronics Inc. (b) 40,000 1,517,408 1,135,000
Sandisk Corporation (b) 95,000 5,601,978 5,812,812
-------------------------------
9,201,511 9,628,287
-------------------------------
RESTAURANTS (3.9%)
--------------------------------------------------------------------------------------------------
Diedrich Coffee Inc. (b) 305,000 1,125,312 629,063
Famous Daves of America (b)(c) 1,007,500 2,612,100 4,470,781
P.F. Chang's China Bistro, Inc. (b) 28,300 578,225 903,831
-------------------------------
4,315,637 6,003,675
-------------------------------
RETAIL (1.2%)
--------------------------------------------------------------------------------------------------
Linens 'N Things (b) 70,000 1,638,209 1,898,750
-------------------------------
</TABLE>
See accompanying notes to schedule of investments. 12
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) June 30, 2000
COMMON STOCKS (CONCLUDED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATIONS INFRASTRUCTURE (5.1%)
-------------------------------------------------------------------------------------------------------
Digital Lightwave Corporation (b) 24,400 $ 1,049,250 $ 2,453,725
Geoworks Corporation (b) 97,000 1,986,188 1,527,750
GRIC Communications Inc. (b) 80,800 2,272,463 1,449,350
US Wireless Corporation (b) 68,200 1,899,376 1,457,775
Unify Corporation (b) 102,400 1,852,312 876,800
--------------------------------
9,059,589 7,765,400
--------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (18.8%)
-------------------------------------------------------------------------------------------------------
Charter Communications (b) 308,500 4,553,095 5,070,969
Pinnacle Holdings Inc. (b) 104,000 4,735,437 5,616,000
Sirius Satellite Radio Inc. (b) 52,300 1,925,032 2,317,544
Tekelec (b) 90,000 2,587,815 4,336,875
Terayon Communication Systems (b) 30,000 2,068,125 1,927,031
Versatel Telecom International ADR (b) 99,400 1,649,682 4,286,625
XM Satellite Radio Holdings (b) 141,200 4,182,402 5,286,175
--------------------------------
21,701,588 28,841,219
--------------------------------
TOTAL COMMON STOCKS (96.7%) 136,062,065 148,338,321
================================
</TABLE>
See accompanying notes to schedule of investments. 13
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) June 30, 2000
SHORT-TERM SECURITY
<TABLE>
<CAPTION>
Principal Amount/
Issue Number of Shares Cost Market Value (a)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM SECURITY (4.7%)
--------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch
Government Securities, Inc., 6.15% acquired on
6/30/00 and due 7/03/00 with proceeds of $7,253,716
(collateralized by $7,235,000 U.S. Treasury Note,
7.50%, due 11/15/01). $ 7,250,000 $ 7,250,000 $ 7,250,000
---------------------------------
TOTAL SHORT-TERM SECURITY (4.7%) 7,250,000 7,250,000
=================================
Total investments in securities (101.4%) $143,312,065(d) 155,588,321
============
Liabilities in excess of other assets (-1.4%) (2,167,860)
------------
NET ASSETS (100.0%) $153,420,461
============
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total market value to
total net assets.
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) Investment represents five percent or more of the outstanding voting
securities of the issuer, and is or was an affiliate of Jundt Funds,
Inc., as defined in the Investment Company Act of 1940 at or during the
period ended June 30, 2000.
(d) Cost for federal income tax purposes at June 30, 2000 approximates book
cost of $143,312,065. The aggregate gross unrealized appreciation and
depreciation on investments in securities based on this cost were:
------------------------------------------------
Gross unrealized appreciation $ 31,873,693
Gross unrealized depreciation (19,597,437)
-------------
Net unrealized appreciation $ 12,276,256
------------------------------------------------
ADR - American Depositary Receipt.
See accompanying notes to financial statements. 14
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: OPPORTUNITY FUND
THE OPPORTUNITY FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE CAPITAL APPRECIATION
BY utilizing an aggressive yet very flexible investment program. While a
percentage of equity holdings in the Opportunity Fund may at times mirror those
in the Growth and the U.S. Emerging Growth Funds, the Opportunity Fund also may
sell securities short, invest in options and futures contracts and leverage the
portfolio. These investment techniques, among others, may be utilized by Jundt
Associates, the investment adviser, to enable the Opportunity Fund to achieve
its objective of capital appreciation. See the Fund's prospectus for a
description of the risks that may be associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF JUNE 30, 2000
(as a percentage of net assets)
--------------------------------------------------------------------------------
[PIE CHART]
Computer Services/Software 13.3%
Healthcare Services 5.6%
Medical Devices/Drugs 19.6%
Interactive Media 1.7%
Miscellaneous 1.3%
Internet Technology 11.0%
Internet Services 3.8%
Wireless/Telecommunication Services 23.3%
Energy 1.1%
Telecommunication Infrastructure 13.2%
Computer Hardware 5.7%
Retail 2.4%
Restaurants 3.2%
15
<PAGE>
PERFORMANCE DATA: OPPORTUNITY FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
--------------------------------------------------------------------------------
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
JUNDT JUNDT
OPPORTUNITY FUND(1) OPPORTUNITY FUND(1) LIPPER CAPITAL
(Class A shares (Class A shares RUSSELL 1000 APPRECIATION
without sales charge)* with sales charge) GROWTH INDEX(2) FUND INDEX(3)
---------------------- ------------------ --------------- --------------
<S> <C> <C> <C> <C>
12/26/96 10,000 9,475 10,000 10,000
12/31/96 9,870 9,352 9,851 10,010
3/31/97 9,640 9,134 9,904 9,558
6/3/97 11,330 10,735 11,777 11,027
9/30/97 14,260 13,511 12,662 12,301
12/31/97 13,932 13,200 12,855 12,009
3/31/98 15,397 14,589 14,802 13,531
6/30/98 16,420 15,558 15,474 13,773
9/30/98 17,721 16,791 14,069 11,796
12/31/98 22,406 21,230 17,830 14,408
3/31/99 24,061 22,798 18,964 15,100
6/30/99 24,854 23,549 19,693 16,565
9/30/99 23,679 22,436 18,972 15,908
12/31/99 30,498 28,897 23,743 20,052
3/31/00 31,421 29,772 25,857 21,857
6/30/00 33,828 32,052 25,126 19,743
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended June 30, 2000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
--------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS A
Without sales charge* 36.12% 41.44%
With sales charge (a) 28.97 39.29
--------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS B
Without sales charge* 35.12 40.43
With sales charge (b) 31.12 40.07
--------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS C
Without sales charge 35.16 40.40
With sales charge (c) 34.16 40.40
--------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS I 36.51 41.83
--------------------------------------------------------------------------------
RUSSELL 1000 GROWTH INDEX 25.67 30.15
--------------------------------------------------------------------------------
LIPPER CAPITAL APPRECIATION FUND INDEX 19.18 21.36
--------------------------------------------------------------------------------
*Applicable to investors who purchased shares at net asset value (without sales
charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
December 26, 1996. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON
THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. The ending
value of investments in the Fund's Class B shares, Class C shares (each
reflecting the deduction of the appropriate deferred sales charge, if any)
and Class I shares (which are not subject to any sales charges) over the same
time period was $30,821, $32,970 and $34,157, respectively. Class B, Class C
and Class I performance will vary from Class A performance due to the
differences in sales charges and expenses applicable to an investment in each
such class.
(2)The Russell 1000 Growth Index measures the performance of the companies
within the Russell 1000 Index with relatively higher price-to-book ratios and
forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF SALES
CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS. Inception date
for index data is December 31, 1996.
(3)The Lipper Capital Appreciation Fund Index is the composite performance of
the 30 largest "capital appreciation" mutual funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the funds' fees and
expenses and assumes reinvestment of all dividends and distributions.
HOWEVER, APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception
date for index data is December 26, 1996.
(4)Inception date is December 26, 1996, for both the Fund's shares and the
Lipper Capital Appreciation Fund Index. Inception date for Russell 1000
Growth Index is December 31, 1996.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT OPPORTUNITY FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC.,
THE FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT
RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. SELLING
SECURITIES SHORT, EMPLOYING LEVERAGE AND INVESTING IN OPTIONS AND FUTURES
CONTRACTS INVOLVE ADDITIONAL INVESTMENT RISK.
16
<PAGE>
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2000
COMMON STOCKS
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER HARDWARE (5.7%)
----------------------------------------------------------------------------------------------------
Broadcom Corporation (b) 12,000 $ 2,055,360 $ 2,627,250
Dialog Semiconductor PLC (b) 50,000 2,715,150 2,512,500
Texas Instruments 40,000 2,597,230 2,747,500
-------------------------------
7,367,740 7,887,250
-------------------------------
COMPUTER SERVICES/SOFTWARE (13.3%)
----------------------------------------------------------------------------------------------------
Immersion Corporation (b) 177,400 3,935,373 5,322,000
Microsoft Corporation (b) 84,800 6,799,256 6,784,000
Siebel Systems Inc. (b) 21,000 2,226,147 3,434,813
Veritas Software Corporation (b) 7,500 86,265 847,617
Visual Networks Inc. (b) 70,000 2,512,003 1,995,000
-------------------------------
15,559,044 18,383,430
-------------------------------
ENERGY (1.1%)
----------------------------------------------------------------------------------------------------
Schlumberger 20,000 1,505,475 1,492,500
-------------------------------
HEALTHCARE SERVICES (5.6%)
----------------------------------------------------------------------------------------------------
Immunex Inc. (b) 76,000 2,558,731 3,757,250
Schering Plough Corporation 80,000 3,067,512 4,040,000
-------------------------------
5,626,243 7,797,250
-------------------------------
INTERACTIVE MEDIA (1.7%)
----------------------------------------------------------------------------------------------------
Echostar Communications - Class A (b) 70,000 519,583 2,317,656
-------------------------------
INTERNET SERVICES (3.8%)
----------------------------------------------------------------------------------------------------
Apropos Technology (b) 87,400 2,401,824 1,737,075
Internet Initiative Japan - ADR (b) 60,000 4,038,473 3,555,000
-------------------------------
6,440,297 5,292,075
-------------------------------
INTERNET TECHNOLOGY (11.0%)
----------------------------------------------------------------------------------------------------
America Online Inc. (b) 133,200 7,823,947 7,026,300
Genuity Inc. (b) 200,000 1,989,060 1,831,250
Motorola Inc. 80,900 2,712,320 2,351,156
Starmedia Network Inc. (b) 94,800 2,988,447 1,789,350
Tele 1 Europe Holdings ADR (b) 78,600 1,486,308 948,113
Travelocity.com Inc. (b) 76,500 2,331,560 1,252,688
-------------------------------
19,331,642 15,198,857
-------------------------------
</TABLE>
See accompanying notes to schedule of investments. 17
<PAGE>
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) June 30, 2000
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDICAL DEVICES/DRUGS (19.6%)
-----------------------------------------------------------------------------------------------------
Amgen (b) 39,900 $ 1,854,365 $ 2,802,975
Biogen Inc. (b) 75,900 5,460,533 4,895,550
Lilly Eli & Company 17,600 1,805,647 1,757,800
Minimed Inc. (b) 29,300 2,748,561 3,457,400
Pharmacia Corporation 204,400 7,857,642 10,564,925
Sepracor Inc. (b) 30,000 2,781,333 3,618,750
-------------------------------
22,508,081 27,097,400
-------------------------------
MISCELLANEOUS (1.3%)
-----------------------------------------------------------------------------------------------------
Sandisk Corporation (b) 29,000 1,382,102 1,774,438
-------------------------------
RESTAURANTS (3.2%)
-----------------------------------------------------------------------------------------------------
Starbucks Corporation (b) 114,200 3,301,276 4,361,012
-------------------------------
RETAIL (2.4%)
-----------------------------------------------------------------------------------------------------
Autozone Inc. (b) 125,000 3,460,625 2,750,000
Best Buy Company Inc. (b) 8,500 531,402 537,625
-------------------------------
3,992,027 3,287,625
-------------------------------
TELECOMMUNICATIONS INFRASTRUCTURE (13.2%)
-----------------------------------------------------------------------------------------------------
AT&T Wireless Group (b) 82,800 2,447,488 2,308,050
At Home Corporation - Series A (b) 172,800 5,178,270 3,585,600
Cisco Systems Inc. (b) 43,800 1,173,332 2,784,037
Corning Corporation 14,000 2,198,108 3,778,250
Global Telesystems Inc. (b) 250,000 3,268,063 3,015,625
Level 3 Communications Inc. (b) 30,800 2,615,955 2,710,400
-------------------------------
16,881,216 18,181,962
-------------------------------
</TABLE>
See accompanying notes to schedule of investments. 18
<PAGE>
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) June 30, 2000
COMMON STOCKS (CONCLUDED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WIRELESS/TELECOMMUNICATION SERVICES (23.3%)
------------------------------------------------------------------------------------------------------------
Charter Communications (b) 240,700 $ 3,615,944 $ 3,956,506
Nextel Communications Inc. - Class A (b) 70,800 2,386,193 4,332,075
Nokia Corporation - ADR A 74,500 3,392,156 3,720,344
Primus Telecommunications Group (b) 90,000 3,161,561 2,238,750
Qwest Communications International (b) 50,000 2,210,500 2,484,375
Time Warner Telecom - Class A (b) 80,000 3,962,500 5,150,000
TV Guide Inc. (b) 75,000 1,876,887 2,568,750
Versatel Telecom International ADR (b) 40,000 755,713 1,725,000
Voicestream Wireless Corporation (b) 24,000 3,080,344 2,791,125
Worldcom Inc. (b) 70,000 2,988,100 3,211,250
---------------------------------
27,429,898 32,178,175
---------------------------------
TOTAL COMMON STOCKS (105.2%) $131,844,624(c) 145,249,630
============
Liabilities in excess of other assets (-5.2%) (7,163,889)
------------
NET ASSETS (100.0%) $138,085,741
============
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total market value to
total net assets.
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) Cost for federal income tax purposes at June 30, 2000 approximates book
cost of $131,844,624. The aggregate gross unrealized appreciation and
depreciation on investments in securities based on this cost were:
------------------------------------------------
Gross unrealized appreciation $ 25,429,269
Gross unrealized depreciation (12,024,263)
-------------
Net unrealized appreciation $ 13,405,006
------------------------------------------------
ADR - American Depositary Receipt
See accompanying notes to financial statements. 19
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: TWENTY-FIVE FUND
THE TWENTY-FIVE FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE LONG-TERM CAPITAL
appreciation by investing in a more concentrated portfolio of approximately, but
not less than, 25 issues of common stock. In selecting investments for the
Fund's portfolio, Jundt Associates employs a fundamental "bottom up" approach in
seeking to identify companies with strong revenue growth. The companies invested
in by the Fund will typically be companies that also are represented in the
other Jundt Funds. Because this Fund is a non-diversified Fund, Jundt Associates
may, with respect to 50% of the assets of the Fund, use broad investment
discretion in the pursuit of the investment objective. However, investment
company regulations require that at least 50% of the Fund's assets must be fully
diversified. See the Fund's prospectus for a description of the risks that may
be associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF JUNE 30, 2000
(as a percentage of net assets)
--------------------------------------------------------------------------------
[PIE CHART]
Computer Services/Software 16.0%
Healthcare Services 10.6%
Medical Devices/Drugs 26.5%
Interactive Media 2.7%
Internet Services 2.6%
Telecommunication Infrastructure 8.9%
Wireless/Telecommunication Services 19.4%
Internet Technology 14.4%
Retail 1.7%
Restaurants 5.3%
20
<PAGE>
PERFORMANCE DATA: TWENTY-FIVE FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
--------------------------------------------------------------------------------
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
JUNDT JUNDT
TWENTY-FIVE FUND(1) TWENTY-FIVE FUND(1) LIPPER CAPITAL
(Class A shares (Class A shares RUSSELL 1000 APPRECIATION
without sales charge)* with sales charge) GROWTH INDEX(2) FUND INDEX(3)
---------------------- ------------------ --------------- -------------
<S> <C> <C> <C> <C>
12/31/97 10,000 10,000 10,000 10,000
3/31/98 11,940 11,313 11,267 11,278
6/30/98 13,080 12,393 12,038 11,469
9/30/98 14,540 13,777 9,823 9,023
12/31/98 17,521 16,602 13,871 11,998
3/31/99 19,638 18,607 13,226 12,574
6/30/99 21,035 19,930 15,320 13,794
9/30/99 20,085 19,301 14,759 13,247
12/31/99 24,809 23,507 18,470 16,698
3/31/00 26,699 25,297 19,788 18,199
6/30/00 23,861 22,608 19,254 16,439
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for year ended June 30, 2000)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
--------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS A
Without sales charge* 13.43% 41.58%
With sales charge (a) 7.48 38.56
--------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS B
Without sales charge* 12.51 40.35
With sales charge (b) 8.51 39.63
--------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS C
Without sales charge 12.49 40.52
With sales charge (c) 11.49 40.52
--------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS I 13.76 41.92
--------------------------------------------------------------------------------
RUSSELL 1000 GROWTH INDEX 25.67 30.01
--------------------------------------------------------------------------------
LIPPER CAPITAL APPRECIATION FUND INDEX 19.18 22.00
--------------------------------------------------------------------------------
*Applicable to investors who purchased shares at net asset value (without sales
charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
December 31, 1997. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON
THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. The ending
value of investments in the Fund's Class B shares, Class C shares (each
reflecting the deduction of the appropriate deferred sales charge, if any)
and Class I shares (which are not subject to any sales charges) over the same
time period was $22,650, $23,420 and $24,008, respectively. Class B, Class C
and Class I performance will vary from Class A performance due to the
differences in sales charges and expenses applicable to an investment in each
such class.
(2)The Russell 1000 Growth Index measures the performance of the companies
within the Russell 1000 Index with relatively higher price-to-book ratios and
forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF SALES
CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS. Inception date
for index data is December 31, 1997.
(3)The Lipper Capital Appreciation Fund Index is the composite performance of
the 30 largest "capital appreciation" mutual funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the funds' fees and
expenses and assumes reinvestment of all dividends and distributions.
HOWEVER, APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception
date for index data is December 31, 1997.
(4)Inception date is December 31, 1997, for the Fund's shares.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT TWENTY-FIVE FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC.,
THE FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT
RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
NON-DIVERSIFIED MUTUAL FUNDS MAY EXPERIENCE GREATER PRICE VOLATILITY THAN
DIVERSIFIED MUTUAL FUNDS.
21
<PAGE>
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 2000
COMMON STOCKS
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER SERVICES/SOFTWARE (16.0%)
----------------------------------------------------------------------------------------------------------
Immersion Corporation (b) 102,100 $ 2,628,194 $ 3,063,000
Microsoft Corporation (b) 48,400 4,065,867 3,872,000
Siebel Systems Inc. (b) 21,900 962,252 3,582,019
Veritas Software Corporation (b) 8,000 115,007 904,125
-------------------------------
7,771,320 11,421,144
-------------------------------
HEALTHCARE SERVICES (10.6%)
----------------------------------------------------------------------------------------------------------
Immunex Inc. (b) 70,600 2,595,265 3,490,287
Schering Plough Corporation 81,300 3,108,000 4,105,650
-------------------------------
5,703,265 7,595,937
-------------------------------
INTERACTIVE MEDIA (2.7%)
----------------------------------------------------------------------------------------------------------
Echostar Communications - Class A (b) 57,600 876,952 1,907,100
-------------------------------
INTERNET SERVICES (2.6%)
----------------------------------------------------------------------------------------------------------
Korea Thrunet Company Limited - Class A (b) 133,400 3,484,737 1,867,600
-------------------------------
INTERNET TECHNOLOGY (14.4%)
----------------------------------------------------------------------------------------------------------
America Online Inc. (b) 109,500 6,410,062 5,776,125
Intuit Inc. (b) 56,900 2,114,806 2,354,237
Starmedia Network Inc. (b) 114,900 3,800,326 2,168,738
-------------------------------
12,325,194 10,299,100
-------------------------------
</TABLE>
See accompanying notes to schedule of investments. 22
<PAGE>
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) June 30, 2000
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDICAL DEVICES/DRUGS (26.5%)
----------------------------------------------------------------------------------------------------
Amgen (b) 26,200 $ 950,169 $ 1,840,550
Biogen Inc. (b) 43,600 2,496,288 2,812,200
Heartport Inc. (b) 712,500 3,456,203 2,048,437
Merck & Co. 20,200 1,318,524 1,547,825
Minimed Inc. (b) 32,300 2,821,402 3,811,400
Pharmacia Corporation 133,600 5,217,329 6,905,450
-------------------------------
16,259,915 18,965,862
-------------------------------
RESTAURANTS (5.3%)
----------------------------------------------------------------------------------------------------
Starbucks Corporation (b) 100,400 2,609,356 3,834,025
-------------------------------
RETAIL (1.7%)
----------------------------------------------------------------------------------------------------
Home Depot 25,200 962,411 1,258,425
-------------------------------
TELECOMMUNICATIONS INFRASTRUCTURE (8.9%)
----------------------------------------------------------------------------------------------------
Advanced Fibre Communication (b) 20,000 1,196,876 906,250
Cisco Systems Inc. (b) 26,300 870,104 1,671,694
Global Telesystems Inc. (b) 175,000 2,473,538 2,110,937
Level 3 Communications Inc. (b) 19,000 1,627,871 1,672,000
-------------------------------
6,168,389 6,360,881
-------------------------------
</TABLE>
See accompanying notes to schedule of investments. 23
<PAGE>
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) June 30, 2000
COMMON STOCKS (CONCLUDED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WIRELESS/TELECOMMUNICATION SERVICES (19.4%)
--------------------------------------------------------------------------------------------------------
Cablevision Systems Class A (b) 22,000 $ 1,268,435 $ 1,493,250
Charter Communications (b) 156,900 3,120,943 2,579,044
Gemstar International Group (b) 49,600 1,691,977 3,048,075
NDS Group PLC ADR (b) 25,000 1,845,000 1,525,000
Qwest Communications International (b) 44,100 1,329,121 2,191,219
Sirius Satellite Radio Inc. (b) 40,000 1,566,112 1,772,500
Terayon Communication Systems (b) 20,000 1,221,250 1,284,688
-------------------------------
12,042,838 13,893,776
-------------------------------
TOTAL COMMON STOCKS (108.1%) $68,204,377(c) 77,403,850
===========
Liabilities in excess of other assets (-8.1%) (5,825,830)
-----------
NET ASSETS (100.0%) $71,578,020
===========
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total market value to
total net assets.
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) Cost for federal income tax purposes at June 30, 2000 approximates book
cost of $68,204,377. The aggregate gross unrealized appreciation and
depreciation on investments in securities based on this cost were:
-----------------------------------------------
Gross unrealized appreciation $ 16,856,281
Gross unrealized depreciation (7,656,808)
------------
Net unrealized appreciation $ 9,199,473
-----------------------------------------------
ADR - American Depositary Receipt
See accompanying notes to financial statements. 24
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) June 30, 2000
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Jundt Jundt Jundt Jundt
Growth U.S. Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
---------------------------------------------------------------------------------------------------------------------
Investment in securities, at market value (note 2)
including repurchase agreements of $3,000,000,
$7,250,000, $0, and $0, respectively (identified
cost: $74,762,975, $143,312,065, $131,844,624,
and $68,204,377, respectively) $ 96,316,980 $155,588,321 $145,249,630 $ 77,403,850
Cash 16,316 22,788 -- --
Receivable for securities sold -- 135,620 5,583,153 --
Receivable for capital shares sold 61,963 363,923 1,080,894 170,062
Receivable from brokers for proceeds on securities
sold short -- -- 973,393 142,714
Dividends and accrued interest receivable 24,777 1,239 27,364 21,890
Deferred organizational costs -- 8,752 12,662 15,780
Prepaid expenses and other assets 3,685 58,182 34,715 19,801
-------------------------------------------------------------
Total assets 96,423,721 156,178,825 152,961,811 77,774,097
-------------------------------------------------------------
LIABILITIES
---------------------------------------------------------------------------------------------------------------------
Loans payable -- -- 7,411,000 5,342,000
Payable for securities purchased 1,626,974 1,466,562 6,930,129 280,500
Payable for capital shares redeemed 80,338 974,071 133,358 324,547
Payable to custodian -- -- 3,657 4,663
Accrued investment advisory fee 77,677 121,960 142,143 76,015
Accrued distribution fee 4,873 74,264 59,657 36,205
Interest payable (note 5) -- -- 78,321 43,604
Accrued expenses and other liabilities 124,073 121,507 117,805 88,543
-------------------------------------------------------------
Total liabilities 1,913,935 2,758,364 14,876,070 6,196,077
-------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 94,509,786 $153,420,461 $138,085,741 $ 71,578,020
=============================================================
</TABLE>
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 25
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) June 30, 2000
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
<TABLE>
<CAPTION>
Jundt Jundt Jundt Jundt
Growth U.S. Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS CONSIST OF
-------------------------------------------------------------------------------------------------------------------------
Capital stock (note 1) $ 58,890,468 $116,939,868 $ 97,319,531 $ 60,468,746
Accumulated net investment loss (529,605) (901,417) (1,468,208) (782,973)
Undistributed net realized gain on investments 14,594,918 25,105,754 28,829,412 2,692,774
Unrealized appreciation on investments 21,554,005 12,276,256 13,405,006 9,199,473
---------------------------------------------------------------
Total, representing net assets applicable to
outstanding capital stock $ 94,509,786 $153,420,461 $138,085,741 $ 71,578,020
===============================================================
Net assets applicable to outstanding Class A shares $ 3,005,986 $ 63,862,826 $ 47,156,801 $ 24,138,846
===============================================================
Net assets applicable to outstanding Class B shares $ 3,695,696 $ 46,426,712 $ 37,427,685 $ 22,097,247
===============================================================
Net assets applicable to outstanding Class C shares $ 1,538,879 $ 31,308,714 $ 26,144,316 $ 16,128,908
===============================================================
Net assets applicable to outstanding Class I shares $ 86,269,225 $ 11,822,209 $ 27,356,939 $ 9,213,019
===============================================================
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE:
-------------------------------------------------------------------------------------------------------------------------
Class A shares of capital stock outstanding:
174,600; 2,753,323; 1,984,316 and 1,103,811,
respectively $ 17.22 $ 23.19 $ 23.76 $ 21.87
===============================================================
Class B shares of capital stock outstanding:
223,187; 2,065,165; 1,612,539 and 1,032,518,
respectively $ 16.56 $ 22.48 $ 23.21 $ 21.40
===============================================================
Class C shares of capital stock outstanding:
92,592; 1,393,788; 1,130,075 and 749,632,
respectively $ 16.62 $ 22.46 $ 23.14 $ 21.52
===============================================================
Class I shares of capital stock outstanding:
4,948,317; 499,155; 1,141,451 and 419,044,
respectively $ 17.43 $ 23.68 $ 23.97 $ 21.99
===============================================================
</TABLE>
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 26
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) June 30, 2000
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Jundt Jundt Jundt Jundt
Growth U.S. Emerging Opportunity Twenty-Five
For the six months ended June 30, 2000 Fund Growth Fund Fund Fund
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME
----------------------------------------------------------------------------------------------------------------------------
Interest $ 152,052 $ 750,960 $ 245,657 $ 130,343
Dividends 118,143 792 71,301 55,722
---------------------------------------------------------------
270,195 751,752 316,958 186,065
---------------------------------------------------------------
EXPENSES (note 4)
----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee 488,940 656,711 718,456 465,335
Transfer agent fee 83,372 84,925 82,145 71,163
Administrative fee 90,797 119,961 105,761 66,135
Accounting Fee 19,670 25,062 21,184 18,870
Registration fee 13,000 33,760 16,360 27,220
Legal fees 16,800 14,370 16,630 8,940
Reports to shareholders 13,640 10,770 12,740 7,430
Directors' fees 15,240 18,060 11,690 9,530
Custodian fee 9,350 12,150 9,410 10,110
Amortization of deferred organizational costs -- 8,648 4,235 3,141
Audit fees 9,000 12,360 8,820 7,670
Account maintenance fee:
Class A 3,449 66,896 40,931 29,637
Class B 4,622 48,891 37,972 26,996
Class C 1,730 33,067 27,151 20,616
Distribution fee:
Class B 13,867 146,672 113,916 80,992
Class C 5,192 99,203 81,451 61,849
Other 11,131 9,771 9,830 8,300
---------------------------------------------------------------
Total expenses before interest 799,800 1,401,277 1,318,682 923,934
Interest expense (note 5) -- -- 79,811 45,104
---------------------------------------------------------------
Total expenses after interest 799,800 1,401,277 1,398,493 969,038
---------------------------------------------------------------
Net investment loss (529,605) (649,525) (1,081,535) (782,973)
---------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
----------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments and futures
transactions (note 3) 6,640,536 14,206,290 19,342,831 1,473,025
Net realized gain (loss) on short sale transactions
(note 3) -- -- 1,698,449 (20,286)
---------------------------------------------------------------
Net realized gain on investments, futures transactions
and short sale transactions 6,640,536 14,206,290 21,041,280 1,452,739
Net change in unrealized appreciation (depreciation)
on investments (8,559,045) (9,471,062) (8,246,033) (4,720,173)
---------------------------------------------------------------
Net gain (loss) on investments (1,918,509) 4,735,228 12,795,247 (3,267,434)
---------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ (2,448,114) $ 4,085,703 $ 11,713,712 $ (4,050,407)
===============================================================
</TABLE>
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 27
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Jundt Growth Fund
------------------------------------
For the
Six months ended
6/30/00 Year ended
(unaudited) 12/31/1999
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
-----------------------------------------------------------------------------------------------------------
Net investment loss $ (529,605) $ (779,519)
Net realized gain on investments, futures transactions and
short sale transactions 6,640,536 22,184,877
Net change in unrealized appreciation (depreciation) on investments,
futures transactions and short sale transactions (8,559,045) (3,735,147)
----------------------------------
Net increase (decrease) in net assets resulting from operations (2,448,114) 17,670,211
----------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
-----------------------------------------------------------------------------------------------------------
Realized capital gains - net -- (11,964,526)
----------------------------------
Total dividends and distributions to shareholders -- (11,964,526)
----------------------------------
CAPITAL SHARE TRANSACTIONS
-----------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 945,088 2,778,513
Class B shares 544,987 2,981,534
Class C shares 649,596 1,006,465
Class I shares 491,383 550,486
Distributions reinvested:
Class A shares -- 302,691
Class B shares -- 398,310
Class C shares -- 120,451
Class I shares -- 7,029,010
Cost of shares redeemed:
Class A shares (777,714) (1,180,075)
Class B shares (377,621) (196,017)
Class C shares (253,880) (197,887)
Class I shares (5,503,075) (8,537,293)
----------------------------------
Net increase (decrease) in net assets
from capital share transactions (4,281,236) 5,056,188
----------------------------------
NET ASSETS
-----------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (6,729,350) 10,761,873
Net assets at beginning of year 101,239,136 90,477,263
----------------------------------
Net assets at end of year $ 94,509,786 $101,239,136
==================================
</TABLE>
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 28
<PAGE>
June 30, 2000
<TABLE>
<CAPTION>
Jundt U.S. Emerging Growth Fund Jundt Opportunity Fund Jundt Twenty-Five Fund
------------------------------------------------------------------------------------------------------
For the For the For the
Six months ended Six months ended Six months ended
6/30/00 Year ended 6/30/00 Year ended 6/30/00 Year ended
(unaudited) 12/31/1999 (unaudited) 12/31/1999 (unaudited) 12/31/1999
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------
$ (649,525) $ (422,919) $ (1,081,535) $ (927,333) $ (782,973) $ (418,882)
14,206,290 14,018,848 21,041,280 11,080,167 1,452,739 1,786,001
(9,471,062) 15,656,848 (8,246,033) 12,608,507 (4,720,173) 12,258,969
------------------------------------------------------------------------------------------------------
4,085,703 29,252,777 11,713,712 22,761,341 (4,050,407) 13,626,088
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
-- (1,642,311) -- (527,460) -- --
------------------------------------------------------------------------------------------------------
-- (1,642,311) -- (527,460) -- --
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
32,694,971 22,402,262 23,449,083 18,074,595 10,833,217 13,633,294
19,191,327 13,762,669 11,580,423 13,005,455 6,955,077 12,178,751
14,377,244 11,732,741 8,601,141 12,772,407 4,875,104 12,400,626
166,640 313,826 339,481 1,329,246 809,851 4,830,791
-- 566,986 -- 152,312 -- --
-- 421,061 -- 84,270 -- --
-- 274,515 -- 79,182 -- --
-- 52,425 -- 31,634 -- --
(4,805,905) (6,394,869) (4,030,526) (9,979,924) (3,230,387) (3,057,103)
(2,022,479) (2,741,316) (1,795,112) (2,601,163) (1,326,647) (397,517)
(2,197,742) (2,462,824) (2,837,569) (1,441,104) (1,941,154) (1,627,412)
(1,610,309) (2,161,675) (1,158,615) (702,741) (1,194,792) (835,023)
------------------------------------------------------------------------------------------------------
55,793,747 35,765,801 34,148,306 30,804,169 15,780,269 37,126,407
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
59,879,450 63,376,267 45,862,018 53,038,050 11,729,862 50,752,495
93,541,011 30,164,744 92,223,723 39,185,673 59,848,158 9,095,663
------------------------------------------------------------------------------------------------------
$153,420,461 $ 93,541,011 $138,085,741 $ 92,223,723 $ 71,578,020 $ 59,848,158
======================================================================================================
</TABLE>
--------------------------------------------------------------------------------
29
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
<TABLE>
<CAPTION>
Jundt Growth Fund
-----------------------------------
For the
Six months ended
6/30/00 Year ended
(unaudited) 12/31/1999
----------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS
----------------------------------------------------------------------------------------------
Shares sold:
Class A shares 55,068 153,263
Class B shares 31,893 169,676
Class C shares 38,075 57,535
Class I shares 26,498 30,349
Shares issued for dividends reinvested:
Class A shares -- 17,208
Class B shares -- 23,444
Class C shares -- 7,069
Class I shares -- 394,888
Shares redeemed:
Class A shares (43,399) (64,814)
Class B shares (22,490) (11,056)
Class C shares (14,824) (11,018)
Class I shares (306,808) (468,529)
------------------------------
Net increase (decrease) in shares outstanding (235,987) 298,015
==============================
</TABLE>
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 30
<PAGE>
June 30, 2000
<TABLE>
<CAPTION>
Jundt U.S. Emerging Growth Fund Jundt Opportunity Fund Jundt Twenty-Five Fund
-----------------------------------------------------------------------------------------------------
For the For the For the
Six months ended Six months ended Six months ended
6/30/00 Year ended 6/30/00 Year ended 6/30/00 Year ended
(unaudited) 12/31/1999 (unaudited) 12/31/1999 (unaudited) 12/31/1999
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
1,389,489 1,449,388 1,046,006 1,078,660 451,856 760,275
834,917 901,036 523,510 784,523 299,255 668,221
625,358 798,264 391,193 773,452 208,457 671,051
6,768 21,440 14,316 78,801 32,017 301,229
-- 27,457 -- 7,164 -- --
-- 20,959 -- 4,042 -- --
-- 13,671 -- 3,810 -- --
-- 2,489 -- 1,477 -- --
(216,431) (435,030) (181,205) (588,445) (140,623) (165,779)
(92,215) (178,206) (82,602) (154,749) (60,413) (20,576)
(100,163) (168,953) (129,344) (86,642) (85,859) (85,825)
(66,477) (144,698) (53,408) (40,935) (51,151) (45,119)
-----------------------------------------------------------------------------------------------------
2,381,246 2,307,817 1,528,466 1,861,158 653,539 2,083,477
=====================================================================================================
</TABLE>
--------------------------------------------------------------------------------
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2000
1. ORGANIZATION
The Jundt Funds are registered under the Investment Company Act of 1940 (as
amended) (the "Act") as open-end management investment companies, each of which
has different investment objectives and their own investment portfolios and net
asset values. The Jundt Growth Fund, Inc. ("Growth Fund") commenced operations
on September 3, 1991, as a diversified, closed-end investment company and
converted to an open-end investment company immediately following the close of
business on December 28, 1995. Jundt U.S. Emerging Growth Fund ("U.S. Emerging
Growth Fund"), Jundt Opportunity Fund ("Opportunity Fund") and Jundt Twenty-Five
Fund ("Twenty-Five Fund") are Funds within Jundt Funds, Inc. (the "Company").
The Company accounts separately for the assets, liabilities and operations of
each Fund. U.S. Emerging Growth Fund, a diversified Fund of the Company,
commenced operations on January 2, 1996. Opportunity Fund, a non-diversified
Fund of the Company, commenced operations on December 26, 1996. Twenty-Five
Fund, a non-diversified Fund of the Company, commenced operations on December
31, 1997.
Growth Fund, U.S. Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund
(the "Funds") currently offer shares in four classes (Class A, Class B, Class C
and Class I). Prior to April 22, 1997, Class I shares of each Fund then in
existence were referred to as Class A shares, and the current Class A shares of
each such Fund were referred to as Class D shares. Shares of Class I of U.S.
Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund (which are not
subject to a front-end or deferred sales charge) are available for investment
only by certain individuals and entities associated with the Funds. Class A
shares of each Fund and Class I shares of Growth Fund (which are available only
to persons that may purchase the other Fund's Class I shares and to Growth Fund
shareholders at the time of the open-end conversion) are generally sold with a
front-end sales charge. Shares of Class B and Class C of each Fund may be
subject to a contingent deferred sales charge when redeemed.
All classes of shares have identical liquidation and other rights and the same
terms and conditions except that Class A, Class B, and Class C shares bear
certain expenses related to the account maintenance of such shares and Class B
and Class C shares also bear certain expenses related to the distribution of
such shares. Shareholder servicing costs attributable to a particular class will
be allocated to such class. Each class has exclusive voting rights with respect
to matters relating to its account maintenance and distribution expenditures and
to certain other matters relating exclusively to such class; otherwise, all
classes of shares have the same voting rights.
U.S. Emerging Growth Fund has discontinued the public sale of its shares to new
investors as of April 30, 2000. However, shareholders who have open U.S.
Emerging Growth Fund accounts may continue to make additional investments in
such accounts and reinvest dividends and capital gains distributions. Current
shareholders in the Fund may also be able to open additional U.S. Emerging
Growth Fund accounts under certain limited conditions. If a U.S. Emerging Growth
Fund account is closed, however, additional investments in the Fund will not
normally be possible.
Growth Fund is authorized to issue up to 10 billion shares, par value $0.01 per
share. The Company is authorized to issue up to 1 trillion shares, par value
$0.01 per share. Currently, 10 billion shares have been designated to each U.S.
Emerging Growth Fund , Opportunity Fund and Twenty-Five Fund.
The investment objective of each Fund is as follows:
* Growth Fund -- to provide long-term capital appreciation by investing
primarily in a diversified portfolio of equity securities of companies that
are believed by the Adviser to have significant potential for growth in
revenue and earnings.
* U.S. Emerging Growth Fund -- to provide long-term capital appreciation by
investing primarily in a diversified portfolio of equity securities of
emerging growth companies that are believed by the Adviser to have
significant potential for growth in revenue and earnings.
* Opportunity Fund -- to provide capital appreciation by employing an
aggressive yet flexible investment program emphasizing investments in
domestic companies that are believed by the Adviser to have significant
potential for capital appreciation.
* Twenty Five Fund -- to provide long term capital appreciation by investing in
a core portfolio of approximately, but not less than, 25 issues of common
stock.
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) June 30, 2000
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
INVESTMENT IN SECURITIES
Investment in securities traded on U.S. securities exchanges or included in a
national market system and open short sales transactions are valued at the last
quoted sales price as of the close of business on the date of valuation or,
lacking any sales, at the mean between the most recently quoted bid and asked
prices. Securities traded in the over-the-counter market are valued at the mean
between the most recently quoted bid and asked prices. Options and futures
contracts are valued at market value or fair value if no market exists, except
that open futures contracts sales are valued using the closing settlement price
or, in the absence of such a price, the most recently quoted asked price. Other
securities for which market quotations are not readily available are valued at
fair value in good faith by or under the direction of the Board of Directors.
Short-term securities with maturities of fewer than 60 days when acquired, or
which subsequently are within 60 days of maturity, are valued at amortized cost,
which approximates market value.
Security transactions are accounted for on the date the securities are purchased
or sold. Realized gains and losses are calculated on the identified cost basis.
Dividend income is recognized on the ex-dividend date. Interest income,
including level-yield amortization of discount, is accrued daily.
FEDERAL TAXES
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and also intend to distribute all
of their investment company taxable income to shareholders.
Therefore, no income tax provision is required. In addition, on a calendar year
basis, the Funds will make sufficient distributions of their net investment
income and realized gains, if any, to avoid the payment of any federal excise
taxes.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily due to wash sales and net
operating losses. The character of distributions made during the period from net
investment income or net realized gains, if any, may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the period in which amounts are distributed may differ
from the year the income or realized gains (losses) were recorded by the Funds.
REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with member banks of the Federal
Reserve System or primary dealers in U.S. government securities. Under such
agreements, the bank or primary dealer agrees to repurchase the security (U.S.
government securities) at a mutually agreed upon time and price. The Funds take
possession of the underlying securities, mark to market such securities daily
and, if necessary, receive additional securities to ensure that the contract is
adequately collateralized.
INITIAL PUBLIC OFFERINGS
The Funds may invest in initial public offerings (IPOs). IPOs and other
investment techniques may have a magnified performance impact on a fund with a
small asset base. The Funds may not experience similar performance as their
assets grow.
DERIVATIVE FINANCIAL INSTRUMENTS AND OTHER INVESTMENT STRATEGIES
The Funds may engage in various portfolio strategies to hedge against changes in
net asset value or to attempt to realize a greater current return.
OPTIONS TRANSACTIONS: For hedging purposes, the Funds may purchase and sell put
and call options on its portfolio securities. Opportunity Fund and Twenty-Five
Fund may also use options for purposes of increasing investment return.
The risk associated with purchasing an option is that the Funds pay a premium
whether or not the option is exercised. Additionally, the Funds bear the risk of
loss of premium and change in market value should the conterparty not perform
under the contract. Put and call options purchased are accounted for in the same
manner as portfolio securities. The cost of securities acquired through the
exercise of call options is increased by the premiums paid. The proceeds from
securities sold through the exercise of put options are decreased by the premium
paid.
When the Funds write an option, the premium received by the Funds is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from writing options which expire unexercised
are recorded by the Funds on the expiration date as realized gains from option
transactions. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium is less than the amount paid
for the closing purchase transaction, as a realized loss.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) June 30, 2000
If a call option is exercised, the premium is added to the proceeds from the
sale of the underlying security in determining whether the Funds have realized a
gain or loss. If a put option is exercised, the premium reduces the cost basis
of the security purchased by the Funds. In writing an option, the Funds bear the
market risk of an unfavorable change in the price of the security underlying the
written option. Exercise of an option written by the Funds could result in the
Funds selling or buying a security at a price different from the current market
price.
FINANCIAL FUTURES CONTRACTS: The Funds may purchase or sell financial futures
contracts for hedging purposes. Opportunity Fund and Twenty-Five Fund may also
use financial futures contracts for purposes of increasing investment return. A
futures contract is an agreement between two parties to buy or sell a security
for a set price on a future date. Upon entering into a contract, the Funds
deposit and maintain as collateral such initial margin as required by the
exchange on which the transaction is effected. Pursuant to the contract, the
Funds agree to receive from or pay to the broker an amount of cash equal to the
daily fluctuation in the value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Funds as unrealized gains or
losses. When the contract is closed, the Funds record a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed.
SHORT SALE TRANSACTIONS: Opportunity Fund and Twenty-Five Fund may engage in
short-selling which obligates the Fund to replace the security borrowed by
purchasing the security at current market value. The Fund will incur a loss if
the price of the security increases between the date of the short sale and the
date on which the Fund replaces the borrowed security. The Fund realizes a gain
if the price of the security declines between those dates. Until the Fund
replaces the borrowed security, it will maintain daily, a segregated account
with a broker and/or custodian, of cash and/or other liquid securities
sufficient to cover its short position. Securities sold short at June 30, 2000,
if any, and their related market values and proceeds are set forth in the Notes
to Schedule of Investments.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions are recorded as of the close of business on the ex-dividend date.
Such distributions are payable in cash or reinvested in additional shares of
each Fund.
EXPENSES
Expenses directly attributable to each Fund are charged to that Fund's
operations; expenses which are applicable to all Funds are allocated among the
Funds on a pro rata basis.
DEFERRED ORGANIZATION AND OFFERING COSTS
Organization costs were incurred in connection with the start-up and initial
registration of U.S. Emerging Growth Fund, Opportunity Fund and Twenty-Five
Fund. These costs are being amortized over 60 months on a straight-line basis
from the commencement of investment operations of such Fund. In the event any of
the initial shares are redeemed during the period that the Funds are amortizing
their organizational costs, the redemption proceeds payable will be reduced by
the unamortized organizational costs in the same ratio as the number of initial
shares being redeemed to the number of initial shares outstanding as the time of
redemption.
Offering costs were capitalized by the Funds and amortized over twelve months
commencing with operations.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts in the financial statements. Actual results could
differ from those estimates.
3. INVESTMENT SECURITY TRANSACTIONS
For the six months ended June 30, 2000, for Growth Fund, U.S. Emerging Growth
Fund, Opportunity Fund and Twenty-Five Fund, the cost of purchases and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows:
Cost of Proceeds
Purchases from Sales
--------------------------------------------------------------------------------
Growth Fund $ 86,134,682 $ 83,769,395
U.S. Emerging
Growth Fund $149,896,417 $ 57,056,329
Opportunity Fund
Long-term investment
transactions $242,790,315 $177,214,215
Short sale transactions $ 53,290,049 $ 59,838,527
Twenty-Five Fund
Long-term investment
transactions $ 54,417,096 $ 25,972,739
Short sale transactions $ 10,119,129 $ 10,637,255
================================================================================
4. INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS AND TRANSACTIONS WITH
AFFILIATES
The Funds have entered into investment advisory agreements with the Adviser. The
Adviser is responsible for the management of each Fund's portfolio and provides
the necessary personnel,
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) June 30, 2000
facilities, equipment and certain other services necessary to the operations of
each Fund. For such services, each Fund pays a monthly investment advisory fee
calculated at the following annualized rates: Growth Fund and U.S. Emerging
Growth Fund -- 1% of each Fund's average daily net assets; Opportunity Fund and
Twenty-Five Fund -- 1.3% of each Fund's average daily net assets.
Each Fund has entered into an Administration Agreement with Firstar Mutual Fund
Services, LLC (the "Administrator") effective March 1, 2000. For the services
rendered to each Fund and the facilities furnished, each Fund is obliged to pay
the Administrator, subject to an annual minimum of $45,000 per Fund, a monthly
fee at an annual rate of .11% of the first $200 million of the Fund's average
daily net assets, .09% of the next $500 million of the Fund's average daily net
assets, and .07% on the Fund's average daily net assets in excess of $700
million. For its fee, the Administrator provides certain administrative,
clerical and record keeping services for each Fund.
The Funds have entered into distribution agreements with U.S. Growth
Investments, Inc. (the "Distributor"), an affiliate of the Adviser. The
Distributor serves as the principal underwriter of each Fund's shares. Pursuant
to the Distribution Plans adopted by each Fund in accordance with Rule 12b-1
under the Act, each Fund pays the Distributor ongoing account maintenance and
distribution fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of each Fund's shares as follows:
Account
Maintenance Distribution
Fee Fee
--------------------------------------------------------------------------------
Class A 0.25% --
Class B 0.25% 0.75%
Class C 0.25% 0.75%
================================================================================
In addition to the investment management fee, the administrative fee and account
maintenance and distribution fees, each Fund is responsible for paying most
other operating expenses, including directors' fees and expenses, custodian
fees, registration fees, printing and shareholder reports, transfer agent fees
and expenses, legal, auditing and accounting services, insurance and other
miscellaneous expenses.
Legal fees of $16,800 for the six months ended June 30, 2000, for Growth Fund,
$14,370 for U.S. Emerging Growth Fund, $16,630 for Opportunity Fund and $8,940
for Twenty-Five Fund were incurred with a law firm of which the secretary of
each Fund is a partner. Certain officers and/or directors of each Fund are
officers and/or directors of the Adviser and/or the Distributor.
Each of the director's of the Company and Growth Fund is also a director of
other fund companies managed by the Investment Adviser. The Company, Growth Fund
and the other fund companies managed by the Investment Adviser have agreed to
pay their pro rata share (based on the relative net assets of each fund company)
of the fees payable to each director who is not an "affiliated person" as
defined in the Act a combined fee of $15,000 per year plus $1,500 for each
meeting attended.
5. BANK BORROWING
The Opportunity Fund and Twenty-Five Fund entered into a Line of Credit
Agreement with Firstar Bank, N.A., Wisconsin, for an amount not to exceed the
lesser of $30,000,000 or 30% of the Fund's assets. For the six months ended June
30, 2000, the Opportunity Fund's average daily balance of loans outstanding was
$40,720 at a weighted average interest rate of 9.17%. The maximum amount of
loans outstanding at any time during the period was $19,657,000, or 12.93% of
total assets. The loans were collateralized by certain Opportunity Fund
investments. The Twenty-Five Fund's average daily balance of loans outstanding
was $29,352 at a weighted average interest rate of 9.41%. The maximum amount of
loans outstanding at any time during the period was $8,427,000, or 9.72% of
total assets. The loans were collateralized by certain Twenty-Five Fund
investments.
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
6. FINANCIAL HIGHLIGHTS -- GROWTH FUND AND U.S. EMERGING GROWTH FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental and ratio information for each period indicated,
calculated based on average shares outstanding, are as follows.
<TABLE>
<CAPTION>
Net Realized
Beginning and Dividends Distributions
Net Asset Net Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Investment
Share Loss Investments Income Gains
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GROWTH FUND
Class A
Six months ended 6/30/00 (unaudited) $ 17.68 (0.10) (0.36) -- --
Year ended 12/31/99 $ 16.66 (0.18) 3.45 -- (2.25)
Year ended 12/31/98 $ 14.20 (0.24) 6.22 -- (3.52)
Year ended 12/31/97 $ 13.64 (0.23) 1.64 -- (0.85)
Year ended 12/31/96 $ 11.95 (0.26) 2.03 -- (0.08)
Class B
Six months ended 6/30/00 (unaudited) $ 17.07 (0.17) (0.34) -- --
Year ended 12/31/99 $ 16.23 (0.30) 3.33 -- (2.19)
Year ended 12/31/98 $ 13.99 (0.35) 6.11 -- (3.52)
Year ended 12/31/97 $ 13.56 (0.32) 1.60 -- (0.85)
Year ended 12/31/96 $ 11.95 (0.36) 2.05 -- (0.08)
Class C
Six months ended 6/30/00 (unaudited) $ 17.13 (0.15) (0.36) -- --
Year ended 12/31/99 $ 16.25 (0.30) 3.34 -- (2.16)
Year ended 12/31/98 $ 13.97 (0.35) 6.15 -- (3.52)
Year ended 12/31/97 $ 13.54 (0.30) 1.58 -- (0.85)
Year ended 12/31/96 $ 11.95 (0.36) 2.03 -- (0.08)
Class I
Six months ended 6/30/00 (unaudited) $ 17.89 (0.09) (0.37) -- --
Year ended 12/31/99 $ 16.83 (0.14) 3.49 -- (2.29)
Year ended 12/31/98 $ 14.28 (0.20) 6.27 -- (3.52)
Year ended 12/31/97 $ 13.69 (0.19) 1.63 -- (0.85)
Year ended 12/31/96 $ 11.95 (0.23) 2.05 -- (0.08)
Year ended 12/31/95 $ 14.95 (0.12) 2.71 -- (5.59)
U.S. EMERGING GROWTH FUND
Class A
Six months ended 6/30/00 (unaudited) $ 21.85 (0.06) 1.40 -- --
Year ended 12/31/99 $ 14.96 (0.08) 7.39 -- (0.42)
Year ended 12/31/98 $ 13.09 (0.17) 5.02 -- (2.98)
Year ended 12/31/97 $ 12.42 (0.11) 4.09 -- (3.31)
Period from 1/2/96* to 12/31/96 $ 10.00 (0.14) 4.47 -- (1.91)
Class B
Six months ended 6/30/00 (unaudited) $ 21.25 (0.13) 1.36 -- --
Year ended 12/31/99 $ 14.62 (0.19) 7.18 -- (0.36)
Year ended 12/31/98 $ 12.90 (0.27) 4.92 -- (2.93)
Year ended 12/31/97 $ 12.37 (0.21) 4.05 -- (3.31)
Period from 1/2/96* to 12/31/96 $ 10.00 (0.24) 4.52 -- (1.91)
Class C
Six months ended 6/30/00 (unaudited) $ 21.24 (0.13) 1.35 -- --
Year ended 12/31/99 $ 14.63 (0.19) 7.17 -- (0.37)
Year ended 12/31/98 $ 12.88 (0.27) 4.94 -- (2.92)
Year ended 12/31/97 $ 12.36 (0.21) 4.04 -- (3.31)
Period from 1/2/96* to 12/31/96 $ 10.00 (0.24) 4.51 -- (1.91)
Class I
Six months ended 6/30/00 (unaudited) $ 22.29 (0.05) 1.44 -- --
Year ended 12/31/99 $ 15.22 (0.04) 7.55 -- (0.44)
Year ended 12/31/98 $ 13.25 (0.13) 5.10 -- (3.00)
Year ended 12/31/97 $ 12.51 (0.07) 4.12 -- (3.31)
Period from 1/2/96* to 12/31/96 $ 10.00 (0.11) 4.53 -- (1.91)
</TABLE>
* Commencement of operations.
(1)Total investment return is based on the change in net asset value of a share
during the period, assumes reinvestment of distributions and excludes the
effects of sales loads. Total investment returns prior to December 29, 1995,
report performance of the Growth Fund as a closed-end fund (assuming dividend
reinvestment pursuant to the Growth Fund's Dividend Reinvestment Plan as then
in effect); as an open-end Fund, the Growth Fund incurs certain additional
expenses as a result of the continuous offering and redemption of its shares.
Total investment returns for periods of less than one full year are not
annualized.
(2)Adjusted to an annual basis.
36
<PAGE>
June 30, 2000
<TABLE>
<CAPTION>
Ratio to Average Net Assets
-------------------------------------------
Ending
Net Asset Net Portfolio Net Assets at
Value Per Investment Net Gross Total Turnover End of Period
Share Gain (Loss) Expenses Expenses Return(1) Rate (000s Omitted)
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 17.22 (1.29)%(2) 1.85%(2) 1.85%(2) (2.60)% 92% $ 3,006
$ 17.68 (0.97)% 1.81% 1.81% 19.71% 127% $ 2,880
$ 16.66 (1.45)% 2.14% 2.14% 42.90% 78% $ 954
$ 14.20 (1.49)% 2.18% 2.18% 10.67% 115% $ 604
$ 13.64 (1.81)% 2.13% 2.13% 14.81% 57% $ 340
$ 16.56 (2.04)%(2) 2.60%(2) 2.60%(2) (2.99)% 92% $ 3,696
$ 17.07 (1.70)% 2.56% 2.56% 18.72% 127% $ 3,650
$ 16.23 (2.18)% 2.89% 2.89% 41.98% 78% $ 515
$ 13.99 (2.28)% 2.93% 2.93% 9.77% 115% $ 189
$ 13.56 (2.53)% 2.88% 2.88% 14.14% 57% $ 37
$ 16.62 (2.04)%(2) 2.60%(2) 2.60%(2) (2.98)% 92% $ 1,539
$ 17.13 (1.72)% 2.56% 2.56% 18.82% 127% $ 1,188
$ 16.25 (2.15)% 2.89% 2.89% 42.32% 78% $ 256
$ 13.97 (2.32)% 2.93% 2.93% 9.82% 115% $ 80
$ 13.54 (2.49)% 2.88% 2.88% 13.97% 57% $ 2
$ 17.43 (1.04)%(2) 1.60%(2) 1.60%(2) (2.57)% 92% $ 86,269
$ 17.89 (0.77)% 1.56% 1.56% 19.97% 127% $ 93,521
$ 16.83 (1.23)% 1.89% 1.89% 43.30% 78% $ 88,752
$ 14.28 (1.22)% 1.93% 1.93% 10.85% 115% $ 80,964
$ 13.69 (1.56)% 1.88% 1.88% 15.22% 57% $ 96,458
$ 11.95 (0.72)% 1.60% 1.60% 17.81% 155% $140,642
$ 23.19 (0.64)%(2) 1.79%(2) 1.79%(2) 6.13% 56% $ 63,863
$ 21.85 (0.25)% 1.80% 2.13% 49.04% 248% $ 34,531
$ 14.96 (1.16)% 1.80% 2.93% 38.65% 197% $ 8,058
$ 13.09 (0.88)% 1.80% 3.35% 33.54% 264% $ 2,117
$ 12.42 (1.36)%(2) 1.80%(2) 3.83%(2) 43.40% 204% $ 1,275
$ 22.48 (1.39)%(2) 2.54%(2) 2.54%(2) 5.79% 56% $ 46,427
$ 21.25 (1.00)% 2.55% 2.88% 47.96% 248% $ 28,106
$ 14.62 (1.91)% 2.55% 3.68% 37.64% 197% $ 8,462
$ 12.90 (1.63)% 2.55% 4.10% 32.55% 264% $ 3,786
$ 12.37 (2.15)%(2) 2.55%(2) 3.62%(2) 42.90% 204% $ 1,709
$ 22.46 (1.39)%(2) 2.54%(2) 2.54%(2) 5.74% 56% $ 31,309
$ 21.24 (1.00)% 2.55% 2.88% 47.88% 248% $ 18,450
$ 14.63 (1.91)% 2.55% 3.68% 37.82% 197% $ 3,301
$ 12.88 (1.63)% 2.55% 4.10% 32.50% 264% $ 1,519
$ 12.36 (2.13)%(2) 2.55%(2) 4.32%(2) 42.82% 204% $ 1,766
$ 23.68 (0.39)%(2) 1.54%(2) 1.54%(2) 6.24% 56% $ 11,822
$ 22.29 (0.00)% 1.55% 1.88% 49.51% 248% $ 12,455
$ 15.22 (0.91)% 1.55% 2.68% 39.06% 197% $ 10,344
$ 13.25 (0.63)% 1.55% 3.10% 33.87% 264% $ 11,773
$ 12.51 (1.09)%(2) 1.55%(2) 3.44%(2) 44.32% 204% $ 9,025
</TABLE>
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
6. FINANCIAL HIGHLIGHTS (CONCLUDED) -- OPPORTUNITY FUND AND TWENTY-FIVE FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental and ratio information for each period indicated,
calculated based on average shares outstanding, are as follows:
<TABLE>
<CAPTION>
Net Realized
Beginning and Dividends Distributions
Net Asset Net Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Investment
Share Loss Investments Income Gains
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPPORTUNITY FUND
Class A
Six months ended 6/30/00 (unaudited) $ 21.42 (0.14) 2.48 -- --
Year ended 12/31/99 $ 15.84 (0.20) 5.92 -- (0.14)
Year ended 12/31/98 $ 11.03 (0.17) 6.81 -- (1.83)
Year ended 12/31/97 $ 9.87 (0.17) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $ 10.00 -- (0.13) -- --
Class B
Six months ended 6/30/00 (unaudited) $ 21.00 (0.23) 2.44 -- --
Year ended 12/31/99 $ 15.60 (0.33) 5.81 -- (0.08)
Year ended 12/31/98 $ 10.94 (0.27) 6.73 -- (1.80)
Year ended 12/31/97 $ 9.87 (0.26) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $ 10.00 -- (0.13) -- --
Class C
Six months ended 6/30/00 (unaudited) $ 20.93 (0.23) 2.44 -- --
Year ended 12/31/99 $ 15.56 (0.33) 5.80 -- (0.10)
Year ended 12/31/98 $ 10.93 (0.27) 6.71 -- (1.81)
Year ended 12/31/97 $ 9.87 (0.25) 4.10 -- (2.79)
Period from 12/26/96* to 12/31/96 $ 10.00 -- (0.13) -- --
Class I
Six months ended 6/30/00 (unaudited) $ 21.58 (0.16) 2.55 -- --
Year ended 12/31/99 $ 15.93 (0.16) 5.98 -- (0.17)
Year ended 12/31/98 $ 11.06 (0.14) 6.85 -- (1.84)
Year ended 12/31/97 $ 9.87 (0.14) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $ 10.00 -- (0.13) -- --
TWENTY-FIVE FUND
Class A
Six months ended 6/30/00 (unaudited) $ 22.74 (0.20) (0.67) -- --
Year ended 12/31/99 $ 16.06 (0.17) 6.85 -- --
Year ended 12/31/98 $ 10.00 (0.15) 7.63 (0.07) (1.35)
Class B
Six months ended 6/30/00 (unaudited) $ 22.34 (0.27) (0.67) -- --
Year ended 12/31/99 $ 15.89 (0.32) 6.77 -- --
Year ended 12/31/98 $ 10.00 (0.27) 7.57 (0.06) (1.35)
Class C
Six months ended 6/30/00 (unaudited) $ 22.48 (0.28) (0.68) -- --
Year ended 12/31/99 $ 15.96 (0.32) 6.84 -- --
Year ended 12/31/98 $ 10.00 (0.25) 7.58 (0.02) (1.35)
Class I
Six months ended 6/30/00 (unaudited) $ 22.82 (0.18) (0.65) -- --
Year ended 12/31/99 $ 16.07 (0.12) 6.87 -- --
Year ended 12/31/98 $ 10.00 (0.10) 7.61 (0.09) (1.35)
</TABLE>
* Commencement of operations.
(1)For Opportunity Fund, excluding interest expense, net of reimbursement.
(2)For Opportunity Fund, excluding interest expense, before reimbursement.
(3)For Opportunity Fund, including interest expense, before reimbursement.
(4)Total investment return is based on the change in net asset value of a share
during the period, asssumes reinvestment of distributions and excludes the
effects of sales loads. Total investment returns for periods of less than one
full year are not annualized.
(5)Adjusted to an annual basis.
38
<PAGE>
June 30, 2000
<TABLE>
<CAPTION>
Ratio to Average Net Assets
------------------------------------------------------------------
Ending
Net Asset Net Gross Expenses Portfolio Net Assets at
Value Per Investment Net Gross Including Total Turnover End of Period
Share Gain (Loss) Expenses(1) Expenses(2) Interest Expense(3) Return(4) Rate (000s Omitted)
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 23.76 (1.67)%(5) 2.10%(5) 2.10%(5) 2.24%(5) 10.92% 171% $47,157
$ 21.42 (1.11)% 2.14% 2.29% 2.32% 36.11% 318% $23,977
$ 15.84 (1.28)% 2.14% 3.35% 3.45% 60.83% 376% $ 9,852
$ 11.03 (1.71)% 2.14% 6.57% 6.85% 41.15% 298% $ 1,084
$ 9.87 (2.14)%(5) 2.14%(5) 4.23%(5) 4.23%(5) (1.30)% 0% $ 112
$ 23.21 (2.42)%(5) 2.85%(5) 2.85%(5) 2.99%(5) 10.52% 171% $37,428
$ 21.00 (1.86)% 2.89% 3.04% 3.07% 35.10% 318% $24,604
$ 15.60 (2.03)% 2.89% 4.10% 4.20% 59.60% 376% $ 8,388
$ 10.94 (2.36)% 2.89% 7.32% 7.50% 40.25% 298% $ 2,298
$ 9.87 (2.98)%(5) 2.89%(5) 4.98%(5) 4.98%(5) (1.30)% 0% $ 1
$ 23.14 (2.42)%(5) 2.85%(5) 2.85%(5) 2.99%(5) 10.56% 171% $26,144
$ 20.93 (1.86)% 2.89% 3.04% 3.07% 35.13% 318% $18,171
$ 15.56 (2.06)% 2.89% 4.10% 4.20% 59.53% 376% $ 2,764
$ 10.93 (2.49)% 2.89% 7.32% 7.63% 40.12% 298% $ 427
$ 9.87 (3.02)%(5) 2.89%(5) 4.98%(5) 4.98%(5) (1.30)% 0% $ 1
$ 23.97 (1.42)%(5) 1.85%(5) 1.85%(5) 1.99%(5) 11.08% 171% $27,357
$ 21.58 (0.86)% 1.89% 2.04% 2.08% 36.55% 318% $25,472
$ 15.93 (1.04)% 1.89% 3.10% 3.20% 61.29% 376% $18,182
$ 11.06 (1.56)% 1.89% 6.32% 6.70% 41.45% 298% $ 3,973
$ 9.87 (1.89)%(5) 1.89%(5) 3.98%(5) 3.98%(5) (1.30)% 0% $ 286
$ 21.87 (1.83)%(5) 2.22%(5) 2.22%(5) 2.35%(5) (3.83)% 41% $24,139
$ 22.74 (0.94)% 2.25% 2.63% N/A 41.59% 213% $18,020
$ 16.06 (1.06)% 2.25% 9.37% N/A 75.21% 294% $ 3,181
$ 21.40 (2.58)%(5) 2.97%(5) 2.97%(5) 3.10%(5) (4.21)% 41% $22,097
$ 22.34 (1.69)% 3.00% 3.38% N/A 40.59% 213% $17,734
$ 15.89 (1.78)% 3.00% 10.12% N/A 73.37% 294% $ 2,321
$ 21.52 (2.58)%(5) 2.97%(5) 2.97%(5) 3.10%(5) (4.27)% 41% $16,129
$ 22.48 (1.69)% 3.00% 3.38% N/A 40.85% 213% $14,093
$ 15.96 (1.81)% 3.00% 10.12% N/A 73.69% 294% $ 667
$ 21.99 (1.58)%(5) 1.97%(5) 1.97%(5) 2.10%(5) (3.64)% 41% $ 9,213
$ 22.82 (0.69)% 2.00% 2.38% N/A 42.00% 213% $10,001
$ 16.07 (0.74)% 2.00% 9.12% N/A 75.43% 294% $ 2,926
</TABLE>
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